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Zonqing Environmental (HKSE:01855) ROC % : 9.92% (As of Jun. 2024)


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What is Zonqing Environmental ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zonqing Environmental's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 9.92%.

As of today (2025-03-04), Zonqing Environmental's WACC % is 7.40%. Zonqing Environmental's ROC % is 14.01% (calculated using TTM income statement data). Zonqing Environmental generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Zonqing Environmental ROC % Historical Data

The historical data trend for Zonqing Environmental's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Zonqing Environmental ROC % Chart

Zonqing Environmental Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 10.62 10.79 9.15 4.14 13.23

Zonqing Environmental Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.77 7.33 7.55 18.58 9.92

Zonqing Environmental ROC % Calculation

Zonqing Environmental's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=374.536 * ( 1 - 11.25% )/( (2625.082 + 2398.25)/ 2 )
=332.4007/2511.666
=13.23 %

where

Invested Capital(A: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4671.2 - 1800.181 - ( 245.937 - max(0, 3542.733 - 4119.774+245.937))
=2625.082

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4207.14 - 1578.753 - ( 230.137 - max(0, 3265.242 - 3677.824+230.137))
=2398.25

Zonqing Environmental's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=268.89 * ( 1 - 7.91% )/( (2398.25 + 2592.671)/ 2 )
=247.620801/2495.4605
=9.92 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4207.14 - 1578.753 - ( 230.137 - max(0, 3265.242 - 3677.824+230.137))
=2398.25

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4152.187 - 1493.642 - ( 65.874 - max(0, 3192.369 - 3608.807+65.874))
=2592.671

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Zonqing Environmental  (HKSE:01855) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Zonqing Environmental's WACC % is 7.40%. Zonqing Environmental's ROC % is 14.01% (calculated using TTM income statement data). Zonqing Environmental generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.


Zonqing Environmental ROC % Related Terms

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Zonqing Environmental Business Description

Traded in Other Exchanges
N/A
Address
No.5888, Fuzhi Road, 3rd Floor, Zhongqing Building, Jingyue High-tech Industrial Development Zone, Jilin Province, Changchun, CHN
Zonqing Environmental Ltd is principally engaged in landscaping, ecological restoration, and other related projects. Its business segments include City renewal construction services: City operation and maintenance services: Design and consultancy services design, and consultancy for construction projects A majority of revenue is derived from the City renewal construction services segment including construction services for landscaping, ecological restoration, and municipal projects. The group's revenue is generated in the PRC.
Executives
Sun Juqing 2202 Interest of your spouse
Zhao Hongyu 2201 Interest of corporation controlled by you
Zonqing International Investment Limited 2101 Beneficial owner
Liu Haitao 2201 Interest of corporation controlled by you
Wang Tiannv 2202 Interest of your spouse
Zonbong International Investment Limited 2101 Beneficial owner

Zonqing Environmental Headlines

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